Tesla is in conversation with the Indian government to set up its dealership outlets across different cities in the country. The company is working out to follow the foreign direct investment (FDI) compliances of India. Other important news from EV world is Ola’s intention of bringing its electric car by 2023 under its EV subsidiary.

Tesla and its Retail Outlets

After achieving homologation for its four electric car models, the biggest challenge for Tesla to enter India is complying with the government norms and regulations. Since India’s FDI norms need a company with more than 51% foreign ownership to source at least 30% of the goods it purchases in the country. In order, Tesla is said to be in negotiations with various Indian OEMs to acquire components such as steering wheels and similar small parts.

Currently, India charges a 100% import duty on cars with a CIF value (Cost Insurance and Freight) of more than $40,000. While it imposes a 60% import tax on vehicles at a lower CIF value of $40,000. Tesla chief Elon Musk has expressed his concern about the high import duty and has demanded Indian authority for relief on the same.

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Following it, indigenous manufacturers like Tata Motors and Ola Electric are opposing import tax cuts. These makers cite that government should focus on putting efforts to make sustainable vehicles more affordable in India by subsidizing local EV production. Nevertheless, Tesla’s aim of developing retail outlets in Indian metro cities will accelerate the company’s plans to enter the indian market. 

Ola Electric Car on way

The EV unit of Ola has previously introduced its electric scooters in India on August 15 and the new generation scooter has been put on sale now. To take the next giant leap, Ola Electric CEO Bhavish Aggarwal has announced the launch of the Ola electric car. The founder revealed his electric car launch plans in an interview to Fortune India. 

Ola Electric Scooter

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The Ola Electric mobility owner said, “Car will be there soon. Right now we’re focused on getting our scooter out but we are working on our car. It’ll be out in 2023.” 

India has been seeing a rise in production and sale in the EV market that cumulatively includes two-wheeler, three-wheeler, and electric cars. As of now, the country shares just 0.5% of the international sustainable vehicle market. 


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